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Bed and Breakfast the cat’s meow Sedro Woolley’s Cat Nap Inn was featured in a Pet Life magazine spread about luxury cat accommodations. The Cat Nap was one of four pet hotels mentioned as the most luxurious in the country. Kolleen Fox, owner, said she’s pleased her bed and breakfast measures up with the best in the U.S. Feline guests at the Cat Nap enjoy a garden, an aquarium, massage services, a special diabetic menu and catnip hour. Rascal and Missy could not be reached for comment by press time.
Sedro Woolley firm wins building award Right Way Plumbing, Heating, Air Conditioning Inc. has won an award from the Skagit and Island County Builder’s Association for its design and installation of plumbing fixtures in a home built to reflect 1920s-era architecture. The Sedro Woolley firm ‘s project was recognized with SICBA’s 2001 “Project of the Year” award. The home’s bathroom includes a claw-foot tub and a stained glass piece designed by Bob Yerby, one of the home’s owners. The kitchen includes period copper accents. The fireplaces were dressed with cast iron fronts. While the theme of the home is traditional, the in-floor radiant heating system is a thoroughly modern example of a custom-designed, individually built environmental control system.
Skagit County gets federal funds Skagit County received almost $500,000 in federal payment-in-lieu-of-taxes (PILT) funds in June. Payments are to offset the cost of having jurisdictional responsibility for tax-exempt federal lands in the county, including parks, federal water projects, military installations, and land administered by the Bureau of Land Management, fish and wildlife, and the forest service. “We estimated in our budget that we would only receive $375,000, so the extra…is a welcome surprise,” said Ted Anderson, Skagit County commissioner. Revenue from PILT funds can be used to offset land and infrastructure maintenance costs directly or can be deposited in general funds.
Mount Vernon must see TV Live, from Mount Vernon, government access television is on the air! City officials, in collaboration with students from the Mount Vernon school district, Mount Vernon Community College, and Affiliated Health Services, recently launched an educational and governmental cable station. The stations will broadcast community events, including high school athletics, festivals, and performances at the Lincoln Theatre. High school and college administrators have developed a curriculum arc that will allow students to gain television experience throughout their educational careers. Initial broadcasts will be in English. Spanish programming will be added shortly. Broadcasts in other languages will be added on a separate station in the future.
Skagit River flood plan at environmental impact stage Skagit County public works along with the Army Corps of Engineers are conducting an environmental impact study of a proposed diversion channel to help control Skagit River floods. The environmental impact stage will last until the end of 2003 and cost approximately $8.4 million. Damaging floods in 1990 and 1995 discharged less than two-thirds the flow that a 100-year flood would be expected to produce. A 100-year flood is an abnormally severe flood that geoscientists expect to occur, on average, every 100 years. Given the flow associated with a 100-year flood, existing levees would result in the flooding of Burlington and Mount Vernon as well as Interstate 5 and State Route 20. In addition to flood control, project designers hope to improve salmon habitat. Presently, the Skagit River contributes 30 percent of threatened Puget Sound Chinook salmon. Given the twin goals of the project, county commissioners have decided that, although there are still a number of proposals on the table, only the Swinomish bypass channel serves both flood control and salmon habitat conservation. The channel option would consist of a five-mile diversion of floodwater from Burlington to the Swinomish channel. Public works will compensate property owners who own land in what would be the footprint of the channel. Business owners will also be compensated for the costs associated with relocating their business. Officials hope to choose an option in 2004. Construction would not begin before 2006 and would be spread over 3-5 years.
Taxable retail sales drop slightly in first quarter Retail sales figures in Skagit County were down slightly in the first quarter of 2002, versus the same period last year. Taxable retail sales declined 0.2 percent, while retail trade declined 0.3 percent according to the Quarterly Business Review, released in July by Washington’s Department of Revenue. In Mount Vernon, retail sales increased a whopping 7.5 percent and retail trade was up by 8 percent. Taxable retail sales declined 2.7 percent during the first quarter in Washington. However, the retail trade component increased by 1.3 percent during the same period. Taxable retail sales account for all sales of goods, services and contracting in the state, whereas retail trade numbers try to account specifically for sales of goods and restaurant sales. Because contracting sales are highly volatile, retail trade figures often provide a more accurate picture of sales at retail outlets. Revenue department analysts said most of the losses in taxable retail sales numbers were due to diminished construction activity. In many areas across the state, retail sales numbers were down, but retail trade showed a modest increase.
Only you can prevent forest fires Washington’s Department of Natural Resources launched
a new Web site to provide updates on fire danger in the state. The
site reports fire danger for each county and is updated daily. Visit www.wa.gov/dnr and follow the links to fire information.
Baron expands telephone system offerings Baron Telecommunications of Bellingham is now offering IP telephone technology as part of their product repertoire. With IP-based telephone systems, an IP network carries voice communications. Therefore, companies can use telephone and computer systems on the same lines. Business locations in multiple sites can be integrated more efficiently with IP telephone systems. Two recent clients, Sampson Rope and Northern Marine, utilized new IP telephone systems to bring multiple business locations together using the same system.
Pacific Northwest Bank announces earnings, dividend Pacific Northwest Bancorp announced a 50-cent per share dividend for the second quarter of 2002, exceeding analysts’ expectations by a full penny per share. The bank reported earnings of $7.9 million for the second quarter, $3 million more than for the same quarter last year. The bank reported increases in deposit growth, commercial loan growth and a decrease in non-performing assets. Service fees increased from the year before as lower loan service higher fees on deposit accounts offset fees. “We have continued to improve our business in many aspects despite the slow recovery of the Pacific Northwest,” said Patrick M. Fahey, president and CEO.
American banks report record profits in second quarter Banks in the United States reported $25.4 billion in profits in the second quarter of 2002, according the Weiss Ratings Inc. These profits were more than $2.5 billion more than the previous record single quarter profit, recorded in the first quarter of 2001. Weiss Ratings analysis determined that substantially higher bank profits resulted from lower interest rates. The banks paid lower rates on deposit accounts and collectively reduced their interest expense by more than 45 percent over the second quarter of 2001. Decreased interest expense more than offset an almost 18 percent decline in interest income. Net interest margins for banks were 3.58 percent, the best quarterly performance since the fourth quarter of 1999. “Banks have been cashing in on last year’s rate cuts by the Federal Reserve,” said Martin D. Weiss, chairman of Weiss Ratings. “However, it will be extremely difficult to sustain this earnings pace. Spreads are bound to narrow as interest rates creep back up. “Moreover, most banks have yet to feel the full brunt of potentially large losses from mounting loan defaults and corporate bankruptcies.”
Horizon Bank among strongest in nation Bellingham’s Horizon Bank is among the top ten strongest banks in the nation, according to Weiss Ratings Inc. Horizon maintained its A+ safety rating from last year Total assets were up almost 6 percent and total income increased by almost 23 percent.
Auditors failed to warn of financial troubles to come Auditing firms gave passing grades to almost 94 percent of firms later cited for accounting irregularities, according to a recent Weiss Ratings Inc. survey. The Worsening Crisis of Confidence on Wall Street: The Role of Auditing Firms was released in July. Of six top auditing firms, only PricewaterhouseCoopers issued a going concern warning on 33 companies that dropped in value. A going concern warning implies an auditor has substantial doubt about a company’s ability to remain a going concern for a reasonable time period. Combined, the 33 firms cited in the Weiss survey dropped from a total peak market value of $1.8 trillion to $527 million. Furthermore, of the 228 companies in the survey that filed for bankruptcy, auditors cleared the books in 42 percent. Again, Weiss found PricewaterhouseCoopers had the best record among large auditing firms, issuing warnings in 63 percent of cases where they audited books for companies that later declared bankruptcy. Time was an element in auditors’ ability to perceive problems with companies they were analyzing. If auditors looked at books less than three months before companies’ filing, they found problems in 91 percent of cases. With audits nine or more months before the companies’ ran out of cash, auditors issued warnings in 38 percent of cases.
Adaptability key to career success More than 33 percent of chief financial auditors surveyed by Accountemps said embracing change is a key part of what they look for in new employees. A further 27 percent said a desire to learn new skills is the most valuable characteristic they look for. “Accounting professionals who can not only adapt to change but also help drive it are well positioned for long-term success,” said Max Messmer, chairman of Accountemps. He offered advice to employees who want to prove their adaptability and continued growth. “In cover letters and during job interviews, cite examples of how you’ve viewed change as an opportunity rather than an obstacle,” Messmer said. “Attend trade conferences, read industry publications, take classes, network with others in your profession – take every opportunity to identify and acquire the skills you need to be a peak performer.” Accountemps is a temporary staffing service for accountants, bookkeepers and financial professionals. Their survey polled 1,400 CFOs from a sample of companies with more than 20 employees.
Murray wants to push Bush for corporate responsibility Sen. Patty Murray (D-Wash.) welcomed Pres. Bush’s statement about corporate accountability, but hoped he would push for stronger laws than he has outlined. “I am pleased that President Bush endorsed parts of a bill that would provide new tools to crack down on corporate fraud and abuse,” Murray said. “It is fine to punish executives after the fact, but that won’t help workers regain their jobs and retirement savings. “To truly take on corporate fraud, two things are necessary – a strong independent oversight board to audit the auditors, and real restrictions on auditor conflict of interest.”
Local Soroptimist presents at international conference Dee Denton, of Soroptimists International of Sedro Woolley, spoke on workplace domestic violence issues at the 37th biennial Soroptimists International of the Americas conference in San Diego. The presentation was an extension of the Sedro Woolley chapter’s “Papering the Town Purple” campaign against domestic violence. Keynote speakers at the conference included Emory Austin and Erin Brokovich.
Governor lauds WorkFirst On the fifth anniversary of WorkFirst, the state released figures suggesting welfare caseloads are down 45 percent since the program began. “In five years, WorkFirst has helped 138,000 parents leave welfare and stay off,” said Gov. Gary Locke. Locke said the program benefits business by reducing advertising and recruiting costs and offering tax credits for employers and training for employees. The state set a five-year limit on receiving welfare case benefits when they introduced their welfare reform bill in 1997. Almost 1,400 families have remained on welfare for the past five years. Most will receive benefits beyond the five-year limit either because they are unable to work, or because their job search has so far proved unsuccessful. Future WorkFirst participants will be tracked by a computer system to ensure they remain active in the program.
State company seeks to forecast the market Puyallup-based Bull Future is offering a new tracking service to help investors guide their way through the bull market. The company seeks to forecast stock performance like weather, using a specially designed algorithm. The company offers forecast information by subscription.
John L. Scott wins innovation award John L. Scott Real Estate won the Inman Innovator Award for most innovative real estate company at a San Francisco conference. The company earned the award for, among other things, their Web site, which was the first real estate Web site in the Pacific Northwest to post photos of each property for sale.
Webefx creating database for Skagit County EMS Bellingham-based Webefx is creating an incident reporting database for the Skagit County EMS. The project is scheduled to be completed by January. The new system will reduce costs for data collection and software maintenance, according to Dave Adams of Webefx. Emergency management officials will also be able to create custom reports to help plan emergency medical services.
Krispy Kreme breaks ground in Burlington Krispy Kreme broke ground on their second northwest location in July in Burlington. The store is set to open in November. The 4,200 sq. ft. location will include a red neon Hot Doughnuts Now sign. Krispy Kreme estimates they sell 5 million doughnuts each day across the country.
New database integration software free for non-profits Kirkland-based Core Logic Software is offering a new service evaluation program for integrating databases to the Internet free to non-profit groups. Core Logic hopes to gauge market demand and potential value of this new software, which is designed to ease integration of pre-existing databases into the Web. Currently, the company is working with Densho: The Japanese American Legacy Project on a digital archive of research materials, including photos, video clips, documents and a multimedia curriculum designed with Stanford University. Densho is a Seattle-based non-profit organization dedicated to preserving Japanese American history.
Conservation groups wary of energy proposals Save our Wild Salmon (SOS), a coalition of conservation organizations and fishing groups, is skeptical about new leasing arrangements for power produced by the Columbia and Snake River hydro systems. The proposal would restructure power transmission over what is now the Bonneville Power Administration system, through a series of 20-year contracts. Changes are at the behest of federal regulators, who want to transform the power distribution system. The Federal Energy Regulatory Commission wants to set up a series of Regional Transmission Authorities to control transmission lines, substations and other equipment. Independent utilities and the BPA would surrender control to an RTO, which would be the only entity with control over distribution. SOS is worried that a new series of contracts will do nothing to mitigate the effect that power generation continues to have on salmon. They believe the changes fail to address the relationship between power generation and salmon protection and increases pressure on the river systems to produce power. They are also worried that new plans will simply settle for management techniques that have failed, in their minds, to protect salmon stocks.
Frontier Financial posts record second quarter profit Frontier Financial Corp. reported second quarter earnings of $9.1 million, up from $8.4 million in the second quarter of 2001. The bank credits an increase in net interest income, improved efficiency and “enhanced fee income” for the rise in profits. Frontier officials are restructuring their balance sheets to increase profits. This means they are focusing on better performing and less costly to maintain investments. “We don’t anticipate a resumption of vigorous economic expansion during the balance of this year,” said Bob Dickson, president and CEO of Frontier Financial. “Therefore, more emphasis will be placed on enhancing fee income, improving efficiency and concentration on credit quality.”
New store to make Skagit County Party City As part of a major expansion into the Seattle/Tacoma area, Party City opened stores in Burlington and Marysville. The expansion is part of their takeover of Paper Warehouse stores. In total, Party City will have 16 stores in the area.
MedZilla.com aligns with BioSourceLink.org MedZilla.com, a Marysville-based Internet recruitment and professional community, has partnered with BioSourceLink.org, an online resource for life science professionals. Under the agreement, visitors to the BioSourceLink site will be able to access MedZilla content, including job listings and a resume database. Representatives from both BioSourceLink and MedZilla said the alliance was natural because of both organizations’ focus on life sciences. Joel Idelson, formerly a biotech recruiter, started BioSourceLink earlier this year. Frank Heasley formed MedZilla in 1994.
Small business organization ranks Washington in top 10 The Small Business Survival Committee ranked Washington State as the eighth most friendly small business climate in the nation. “The Small Business Survival Index compares how government in the states treat small businesses and entrepreneurs,” said Raymond J. Keating, SBSC chief economist and author of the study. The index measures 20 major government-imposed or government-related costs that impact small business, including many types of taxes, health care costs, electricity costs, workers’ compensation, crime rates, right to work, number of bureaucrats, and state minimum wages. Washington ranks well because of the lack of personal income, capital gains, corporate income and added death taxes. In addition, the state ranks favorably in terms of health care costs and number of bureaucrats. However, the study points out that Washington carries the heaviest burden of sales, gross receipts and excise taxes and ranks poorly in terms of unemployment tax, workers’ compensation costs, the crime rate and gas taxes. Carolyn Logue, Washington state director for the National Federation of Independent Business, said the top ten finish is misleading. “The only reason our state ranks as highly as it does in the index is because of our lack of state income tax,” she said, in a statement. In other significant tax categories, she said the state ranks at or near the top of the country. “One thing is clear: 9/11 and the dot-com bust can no longer be excuses for Washington’s dismal economic record. There are very serious structural problems with our state’s economy.” One problem she cites is the state’s minimum wage law. “The minimum wage is an entry-level salary,” Logue said. “Despite what proponents of increasing the minimum wage rates would have you believe, only a minuscule number of families depend on the minimum wage as their sole source of income. “Small business abuse should be a crime,” Logue said. “The best policy environment for entrepreneurship consist of low taxes, restrained government spending and regulation and government fulfilling its duty of protecting life, limb, and property,” Keating said. “When it gets its policy mix right, a state is well positioned to compete both nationally and globally.” The top five states, according to the index are South Dakota, Nevada, Wyoming, Texas and Florida. The bottom five are New Mexico, Minnesota, Maine, Hawaii and the District of Columbia.
Finance executives say they’re happy A recent RHI poll found most chief financial officers are happy with their companies. In fact, 36 percent of CFOs say they hope to stay in the current position and almost one-third hope their next career move will be retirement. Less than 10 percent of CFOs hope to start their own companies and only 12 percent hope to become a CEO. “Finance professionals typically aspire to the position of CFO for an organization, so it’s not surprising to see high levels of job satisfaction among executives in this role,” said Paul McDonald, executive director of RHI Management Resources. However, many senior financial professionals are baby-boomers and already making plans for retirement. “As this trend gains momentum, there will be a greater demand for senior-level financial professionals to fill these vacancies,” McDonald said.
Weiss recommends four steps for choosing a brokerage firm Weiss Ratings, a ranking agency for brokerage firms, has released four recommended steps when investors select brokerage firms. Recommendations are part of a larger report, Crisis of Confidence on Wall Street, addressing the run of bad corporate news that has depressed the stock market. Step 1: Investigate the firm’s integrity. Investors can use the National Association of Securities Dealers Regulation Web site (www.nasdr.com) to find information about individual brokers. Entering a brokerage firm name will bring up a report listing private and regulatory legal action against the firm. Weiss Ratings has produced a study ranking the top 18 brokerage firms in the US for the period 1997 - 2001. Their study suggests Prudential Securities and Ameritrade rank worst in terms of legal actions brought against them. Fidelity Brokerage Services, Credit Suisse First Boston and Edward D. Jones ranked best. Step 2: Check on the firm’s financial stability. Investors should make sure they know if the firm has adequate capital or is exposed to excessive risk or legal action. According to Weiss, the least stable brokerages are Ameritrade, Merrill Lynch Pierce Fenner and Smith, and Credit Suisse First Boston. More stable brokerages include A.G. Edwards, Edward D. Jones and Fidelity Brokerage Services. Step 3: Check on the firm’s track record before relying on a broker’s advice. Check brokerage firm’s current or past ratings on particular stocks using a Web based financial information site, such as finance.yahoo.com or www.stockselector.com. Because conflict of interest can result in self-serving ratings, investors should make sure broker’s recommendations have a good track record. Weiss found that 47 brokerage firms gave buy or hold recommendations on firms that failed in the first four months of 2002. Salomon Smith barney did not issue sell warnings of eight companies that went bankrupt, while their hold ratings remained public for some companies right up until they filed for bankruptcy. By contrast, Edward D. Jones didn’t recommend shares in failing firms and even was proactive about warning customers of impending trouble. Step 4: Shop around for the best commissions Commissions can make a big difference to a portfolio. According to the Weiss report, high commissions can wipe out a $100,000 account in nine years, even with consistently profitable trades. Lower commissions can help the same account grow to over $208,000 in ten years. Merrill Lynch Pierce Fenner and Smith, UBS Painewebber and Salomon Smith Barney charge the highest commissions as full service firms. Fidelity Brokerage Services, TD Waterhouse Investor Services and Ameritrade are discount or online firms and charge the lowest commissions.
Whidbey Island Bank company second quarter earnings up Washington Banking Company, the holding company for Whidbey Island Bank, reported a 28 percent increase in second quarter earnings for 2002. Net income was $1.4 million, up from $1.1 million in second quarter of 2001. Michael D. Cann, president and CEO of WBC, attributed the earnings increase to portfolio quality. “In addition to our ongoing portfolio review, we have strengthened our underwriting standards,” he said. While the company appears close to hitting their targets for 2002, they do not intend to raise those targets. Instead, they expect the cost of expansion to help level out performance levels. Whidbey Island Bank is building a new loan production office in Smokey Point/Arlington, building two new buildings to relocate the Camano Island branch and seeking to lease office space for a Fairhaven branch in Bellingham.
Two techies come home to launch a business A pair of young entrepreneurs have brought their computer and technology talents back home to the Skagit Valley. Christopher Crooker and James West, both graduates of Mount Vernon High School, have returned to the valley after years of work with Microsoft and other high-tech companies. Their new company, Acquist Inc., will specialize in providing consulting services to small and medium-sized businesses in need of improving their use of technology to increase efficiency and profitability. “We’ve been in the computer industry long enough now that we’ve grown our talents to where we can help companies with their web pages and technology to grow their business,” said James West, vice president of the firm. Crooker, Acquist’s president, developed his computer skills rapidly even while a high school student. He was advanced enough that he was recruited by Microsoft straight out of high school. He played a key role in ensuring the quality of products at the Microsoft Corporation for Windows 2000, Office 2000, Commerce Server 4.0 and the software behind the company’s licensing operations. In addition, he integrated the Cisco ICM telephony system with Kana SilkNet Customer Relationship Management software while working for Ernst & Young. Acquist’s offices are located at the eTech Center, 1800 Continental Place, Suite 110, just off College Way in Mount Vernon. “Our goal is to help the local business community embrace the advantages of the new wired economy,” said West, financial manager and primary customer contact. “We do an in-depth study of how the business is run and explore areas where processes can be refined or improved with technology.” Acquist is located in the Mount Vernon eTech Center, at 1800 Continental Place. West said that the company will focus on improving businesses by making practical recommendations, evolving and refining processes and employing technology where appropriate. After an initial free consultation to explore the needs of the client and potential benefits of a business evaluation, Acquist will recommend a custom analysis strategy. For as little as $1,000 an organization can dramatically reduce costs and increase profits. “We are excited about the opportunity to help forward-thinking businesses in the area evolve into the companies they want to be,” said Crooker, who is also the firm’s technical director and business strategist. “Being at the forefront of the maturing technology industry gives us a rare opportunity to really help people and take a leading role in this golden age.” The corporate website, www.acq-uist.com, was designed in-house and employs cutting-edge technology provided by Microsoft’s new .NET development platform. Crooker has been creating software for more than eight years. He is responsible for conceiving and directing the company’s technology offerings. West joined Loansoft Incorporated in Berkeley after graduating cum laude from the University of Washington with a bachelor’s degree in Business Administration with a concentration in Information Systems. |
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